Vat / service tax for property under construction
Sanjay Lavu Mungekar
(Querist) 03 March 2012
This query is : Resolved
I have booked a flat on 27th August 2009.My property is under construction and the possession is due by April 2012.
The agreement value of the property is of 15.65 Lac. and total cost is 17.47 lac
stamp duty done on : 23/11/2009
registration done on: 26/11/2009
I made the payment in below schedule
self contribution
51,000 on 27/08/2009 (booking)
1,82,000 on 15/09/2009
1,14,000 on 30/09/2009
-----------------------
3,47,000 total self contribution
Loan amount
4,97,000 on 28/11/2009
2,38,000 on 20/02/2010
1,00,000 on 30/05/2010
1,00,000 on 31/12/2010
1,00,000 on 29/09/2011
----------------------
10,35,000 paid with loan amount
3,65,000 is pending
I came to know that there is no SERVICE tax liability since flat booked well before service tax notification in july 2010 after budget.
http://taxguru.in/service-tax/book-under-construction-flat-before-july-2010-to-avoid-3-30-service-tax-on-agreement-
value.html
Now my builder says that I need to pay 15,650/- for VAT and
40,690/- for Service tax
Do I need to pay any VAT/SERVICE CHARGES, need your expert advice
thnx
Raj Kumar Makkad
(Expert) 03 March 2012
You have to pay service tax on all payments made after July 2010 but no VAT is applicable.
Nadeem Qureshi
(Expert) 03 March 2012
may be mr. Makkad is right, waot and watch for others experts opinion
C. P. CHUGH
(Expert) 04 March 2012
When the registration of Property is done before July 2010, any payment made after that date should not attract service tax as the payments lateron are made as per deferred payment agreement between the buyer and seller. Once the ownership has been changed and title so registered before the cut-off date i.e July No service tax should be paybale on such transactions. This is my opinion and I may be wrong.
Sanjay Lavu Mungekar
(Querist) 07 March 2012
requesting experts to anaswer this query, there is lot of confusion on this subject among many peoples (flat buyers)& builders are asking for cheque's in their names. If service tax and vat is not applicable in such case (IF BOOKING DONE BEFORE JULY 2010, WHEN NOTIFICATION CAME) then builders are cheating them.
request all experts to come on this with right answer.
thnx
